The Canada Emergency
Business Account
Latest Updates
You may submit repayment requests for your CEBA loan through Online Banking. Log on to Online Banking to request a repayment.
The Government of Canada has extended the repayment deadline for CEBA loans to qualify for partial loan forgiveness from December 31, 2022 to December 31, 2023. In October 2022, we sent CEBA borrowers their amended terms reflecting the date change.
The program deadline for the federal government’s Canada Emergency Business Account has passed, but we are continuing to provide support to members with funded CEBA loans.
CEBA Program Overview
The CEBA program provided a $40,000 or $60,000 loan to eligible businesses affected by COVID-19 to help cover non-deferrable operating costs.
Terms for loans repaid prior to the forgiveness deadline of December 31, 2023:
- Interest rate: 0%
- Principal payments are not required.
- Forgiveness:
- $40,000 loans: $10,000 may be forgiven if $30,000 is repaid by the forgiveness deadline.
- $60,000 loans: $20,000 may be forgiven if $40,000 of the loan balance is fully repaid by the forgiveness deadline.
Terms for loans repaid after December 31, 2023:
- The loan will be extended to December 31, 2025 if not repaid by the forgiveness deadline
- Interest rate: 5% per year
Loan Forgiveness
Borrowers who received $60,000 in CEBA funds:
For borrowers who took out the full $60,000 CEBA loan, whether as a new applicant or through the original CEBA loan plus the expansion loan, the program provides for a blended amount of forgiveness. The blended forgiveness works out to 1/3 of the loan, if 2/3 of the original balance is paid on or before December 31, 2023. To have $20,000 of your $60,000 loan forgiven, simply repay $40,000 on or before the forgiveness deadline.
Example 1:
Amount Borrowed: $60,000
Amount Repaid by December 31, 2023: $40,000
Available Forgiveness: $20,000
Example 2:
Amount Borrowed: $60,000
Amount Repaid by December 31, 2023: $35,000
Available Forgiveness: $0
Borrowers who received $40,000 in CEBA funds:
For borrowers who took the original $40,000 CEBA loan before December 2020 and did not apply for an expansion loan, $10,000 of the loan will be forgiven if $30,000 is paid on or before December 31, 2023.
Example 1:
Amount Borrowed: $40,000
Amount Repaid by December 31, 2023: $30,000
Available Forgiveness: $10,000
Example 2:
Amount Borrowed: $40,000
Amount Repaid by December 31, 2023: $25,000
Available Forgiveness: $0
Borrowers who repaid the original $40,000 loan before December 2020 and received the $20,000 expansion loan:
Members who received the $20,000 CEBA expansion loan after having fully repaid their original $40,000 CEBA loan will have $10,000 of their expansion loan forgiven if the additional $10,000 is paid on or before December 31, 2023.
Example 1:
Amount Borrowed: $20,000
Amount Repaid by December 31, 2023: $10,000
Available Forgiveness: $10,000
Example 2:
Amount Borrowed: $20,000
Amount Repaid by December 31, 2023: $8,000
Available Forgiveness: $0
For further detail on the forgiveness terms of the CEBA program, please visit the Government of Canada’s CEBA website at https://ceba-cuec.ca.
Loan Repayment
You may submit repayment requests for your CEBA loan through Online Banking.
Frequently Asked Questions
No. Program deadlines have passed and applications are no longer being taken. Applicants can no longer:
- Apply for a $60,000 CEBA loan or the $20,000 expansion
- Submit additional information related to their Business Numbers
- Requalify under the Eligible Non-Deferrable Expenses Stream
Up to December 31, 2023, the interest rate is 0%.
Starting the day after the deadline, interest will accrue on the balance of the term loan at the rate of 5% per year, payable monthly on the last day of each month.
You have the opportunity to make payments on the loan at your discretion. Prior to December 31, 2023, you can make payments at any time in any amount without penalty.
To be eligible for loan forgiveness, you need to repay the full amounts outlined above under Loan Forgiveness by December 31, 2023.
Any outstanding funds the day after December 31, 2023 will be subject to a 5% per year interest fee with no principal payments required. The remaining balance is to be paid in full no later than December 31, 2025. If there is any balance outstanding after December 31, 2023, the loan will not be eligible for any forgiveness.
The forgivable portion of the loan ($10,000 or $20,000, depending on the amount of the loan received) is taxable. The remaining amount is considered a repayable loan, and thus does not need to be declared. The forgivable portion of the loan would be taxable in the year the loan was received.
This information is provided for general purposes and Coast Capital is not responsible for any actions taken based on this information. For more information on how to declare this income, or any other tax questions related to the CEBA loan, we strongly recommend consulting with appropriate tax advisors.
The CEBA program has now provided this information. You should have received an email from Coast Capital in October 2022 outlining how to proceed. If you have not received this information, please contact business@coastcapitalsavings.com, or call us at 1.888.517.7000 (toll-free in North America).
Please visit https://ceba-cuec.ca, the Government of Canada’s website for the CEBA program, to learn more.
